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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] Korea Zinc, currently engaged in a management dispute with the Youngpoong-MBK Partners alliance, has been fined 65 million KRW for violating disclosure regulations after retracting its capital increase plan.
The company announced on December 11 that it had been penalized with a 6.5-point penalty and a 65 million KRW fine for withdrawing its decision to increase capital, which was originally announced on October 30.
On that date, Korea Zinc had disclosed plans to issue 3.73 million new common shares, nearly 20% of its total shares, at a price of 670,000 KRW per share in a public offering following a share buyback. However, after the company announced the share buyback at 890,000 KRW per share in a bid to enhance shareholder value amid the management dispute, the abrupt capital increase decision drew criticism from the market.
The Financial Supervisory Service (FSS) intervened, stating that the announcement could mislead investors, prompting the company to withdraw the capital increase just one week later.
In addition to the fine, Korea Zinc also received a one-point penalty for a delayed disclosure regarding the correction after the management dispute with Youngpoong and MBK Partners, although no fine was imposed for this particular violation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
